FirstEnergy Proposes $800M Upgrades With 2.2–2.8% Annual Rate Hikes
FirstEnergy's Ohio utilities plan to file a three-year rate plan by May 22, 2026, proposing $800 million annual distribution upgrades and $83 million annual tree trimming to boost reliability. The TYRP would cap average annual residential distribution rate hikes at 2.2–2.8% (around $4–$5 per month) and smooth bill changes through 2030.
1. Three-Year Rate Plan Filing
FirstEnergy’s Ohio electric utilities—The Illuminating Company, Ohio Edison and Toledo Edison—will submit their first Three-Year Rate Plan to the Public Utilities Commission of Ohio by May 22, 2026. This marks a shift from historical cost-based ratemaking to a forward-looking model that outlines multi-year distribution investments and predictable annual reviews.
2. Planned Investments and Reliability Upgrades
The TYRP allocates an average of $800 million per year to upgrade poles, wires and equipment and integrate new grid technologies, plus $83 million annually for expanded tree trimming. These investments aim to reduce outages and accelerate restoration, especially during severe weather events that have historically disrupted service.
3. Projected Rate Increases and Bill Impact
Under the plan, a typical non-shopping residential customer using 1,000 kWh per month would face average annual distribution rate increases of 2.2% ($4.26/month) in Ohio Edison territory, 2.6% ($5.15/month) in The Illuminating Company, and 2.8% ($5.30/month) in Toledo Edison. If approved, these hikes would remain below the 10-year U.S. inflation average of 3.3% through 2030.
4. Affordability and Support Programs
The proposal continues and expands assistance for low-income customers, energy-efficiency upgrades and demand-response programs for large users. By smoothing distribution rate changes, the plan seeks to make bills more predictable while maintaining funding for customer support and conservation incentives.